WiMax Promises to Shake up Wireless Data Market

WiMax offers high-speed Internet access over a wide area and comes in two versions, a fixed-wireless version and another for mobile. The technology, often likened to Wi-Fi on steroids, has two advantages over LTE (Long-Term Evolution) it's available today and is free from the hefty royalty charges required for 3G (third-generation) mobile devices and equipment. By comparison, LTE has another two to three years to go before it can be deployed and, because the radio uplink uses CDMA (Code Division Multiple Access), device makers will have to pay substantial royalties to Qualcomm.

"They charge a 5 percent royalty on the handset or devices, and that's on the retail side...Behind the door, they're charging anywhere from 15 to 30 percent on the chipsets," said Bill Rojas, director of communications research at IDC Asia-Pacific, adding that WiMax backers have agreed to a much lower royalty for using the technology.

Intel sees 2008 as the year when WiMax will start to appear in computers, such as a WiMax-equipped Asustek Computer Eee PC that Sriram Viswanathan, vice president of Intel Capital, the chip maker's investment arm, and general manager of the company's WiMax Program Office, showed off in Singapore. "We have a variety of these devices. Not all of them will be launched on the first day, but the fact is during the second half (of 2008) you will see a plethora of devices," Viswanathan said.

"Intel doesn't expect shipments of WiMax-equipped computers to hit high volumes during 2008, largely due to the limited availability of WiMax services. As more networks come online in 2009, shipment volumes will rise but the technology will not become a standard feature on computers for some time, " Viswanathan said.

WiMax will also find a foothold in emerging markets, where broadband Internet penetration remains low. In these markets, the technology will be used as a fixed-wireless service, providing wireless Internet access to a fixed location, such as a home or office, rather than a service designed for mobile users.